The Swiss-based third-party logistics provider’s net turnover for the quarter rose 7.2 percent from the corresponding 2016 period, while the seafreight and airfreight segments experienced a boost in volumes.
Swiss-based Kuehne + Nagel Group’s net earnings for the first quarter of 2017 totaled 165 million Swiss francs (U.S. $165 million), slipping 2.4 percent from the corresponding 2016 period, according to the company’s latest financial statements.
The global third-party logistics provider’s net turnover for the quarter stood at CHF 4.3 billion, up 7.2 percent year-over-year.
K + N’s seafreight segment saw volumes rise 9 percent from the first quarter of 2016 to over 1 million TEUs, gaining significant market share in almost all trade lanes, particularly in the transatlantic and transpacific. The segment’s earnings before interest and taxes (EBIT) for the quarter tumbled 13.1 percent year-over-year to CHF 93 million.
The airfreight segment’s volumes soared 15.5 percent from the first quarter of 2016 to 350,000 tons, while EBIT slipped 1.4 percent to CHF 72 million.
In regards to the overland segment, K + N said, “Higher volumes in the groupage, full truckload and intermodal businesses and the increased demand for industry-specific solutions, particularly for the pharma and the expo & event sectors contributed to the positive development.” The segment’s EBIT for the quarter increased 75 percent year-over-year to CHF 7 million.
Meanwhile, in the contract logistics segment, where EBIT rose 12.1 percent from the first quarter of 2016 to CHF 37 million, K + N said net business was won in the fields of e-commerce and pharma, noting how the acquisition of two specialized pharma logistics companies will generate additional growth.
The two pharma logistics companies include Ferlito Pharma in Italy and Zet Farma in Turkey. K + N entered into an agreement to acquire 100 percent of the shares of Ferlito Pharma in January, and struck a deal to acquire 100 percent of the shares of Zet Farma in March. Both of these acquisitions are subject to customary closing conditions.
In other news, K + N also opened a new branch in Aberdeen to offer international freight forwarding and integrated supply chain solution services to the oil and gas industry, as well as core seafreight, airfreight and overland solutions. The 11,000-square-meter facility has been fully operational since the end of March.
K + N posts Q1 2017 financial results
